As per the terms of the agreement, U3O8 will issue 20,252,327 common shares in exchange for all of the 50,630,819 issued and outstanding common shares of Calypso. Each Calypso Share will be exchanged 0.40 of one common share in the capital of U3O8
Both the companies entered into an agreement on 11 March 2013 valuing the deal at CAD3.8m ($3.78m) payable in shares of U3O8 at the closing price of its share on 8 March 2013.
Through this acquisition, U3O8 will extend its strategic land holding around the state-owned Cerro Solo and Sierra Pintada uranium deposits in Argentina, besides adding nearly $3.3m in cash.
The agreement is subject to final regulatory and court approvals.
